Start Here to Discover a Great Deal on Your First Home Purchase
It’s easy to get so excited about buying your first home that you forget about the details. But overlooking little things at the start can hurt you later on,
so being prepared and well educated is essential.
1) How Much Home Can You Afford?
Your home may be the biggest investment you ever make. If you invest wisely, the payoff can be big. However, making the mistake of buying a home you can’t afford and then falling behind on payments can ruin your credit.
Use our mortgage payment calculator to figure out the payments of different homes. Then assess your personal finances to see what really fits your budget. Remember, there are many expenses associated with home ownership beyond your mortgage payment. You’ll need to budget for home repairs and maintenance, as well as decorating and improvements. Making your home your own with special touches can be a fun and exciting process when you have the extra cash to spend.
2) Understand the Mortgage Process
If you’ve never had a mortgage before, the process can be intimidating. You lender will ask for lots of personal and financial information, so be prepared to provide documentation of your income and investments with copies of your pay stubs and bank statements. If you are self employed, retired or not working, your mortgage specialist will work with you to gather the documentation needed to show you can make the payments on your loan.
Once you complete your application, you’ll be asked to lock your interest rate. Interest rates change daily, and the rate lock will protect you from fluctuations in the market.
An appraisal will be ordered to determine the value of the property you are purchasing. A professional appraiser will evaluate the home and provide a formal appraisal, which is an estimate of the market value of the home. To protect their investment, the lender will not lend more than the appraised value of the property. (There is no problem if the appraisal is higher than the purchase price, that simply means you’re getting a good deal on the home.)
Your completed application will be submitted to underwriting for evaluation before you get a final approval. The underwriter assesses all the information about the property and your loan application to determine whether the lender should approved the loan.
Once your loan is approved, your Mortgage Specialist will schedule your closing. At the closing, you’ll review and sign all your loan documents. You’ll also recieve a copy of the appraisal and survey for your record. This is when you become a homeowner, so celebrate this exciting step in your life!
3) Be Prepared for Home Ownership
After closing and moving into your home, you’ll probably become a regular in your local home improvement center. No matter how “move in ready” your home seemed before closing, you’re sure to find things you need to change or fix. Pace yourself and don’t tackle too much too soon. Sometimes in helps to live in the home a while before making decisions about big changes.
You will also need to perform regular maintenance to keep your home in great condition. Changing air filters, cleaning carpets and windows and caring for any landscaping are all important maintenance activities.
